The Unintended Consequences of Affordable Housing Lotteries
Episode Description
ABOUT THE EPISODE Judd Kessler, Wharton Professor of Business Economics and Public Policy and author of Lucky by Design, tells how affordable housing lotteries function, why they generate hidden markets, and how better design could improve outcomes for renters.
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Brief Summary
Judd Kessler discusses the housing crisis, hidden markets, and lottery systems for affordable housing allocation in American cities.
Key points
- The Housing Crisis in America. The housing crisis is driven by various factors, particularly affecting affordable housing in cities.
- Understanding Hidden Markets. Judd Kessler explains hidden markets in housing and their implications for affordability.
- The Lottery System for Housing. Lotteries are becoming a common method to allocate affordable housing units in cities.
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Episode highlights
- Understanding Hidden MarketsJudd Kessler explains hidden markets in housing and their implications for affordability.“A hidden market is where there's more demand than we can reasonably serve.”0:55Jan 21, 2026
- The Lottery System for HousingLotteries are becoming a common method to allocate affordable housing units in cities.“In New York City, there were 10,000 units and 6 million lottery entries.”5:50Jan 21, 2026
